According to a recent white paper, small business leaders are aware of cyber risks but do not think that they will be impacted and therefore do not buy comprehensive Cyber Risk Insurance (also called Data Breach, Privacy and Network Security insurance coverage). A prior post notes prior buying trends and need.
The paper, by the Insurance Information Institute (III) and JD Power (here & here), noted that cyber attacks hit 10% of all small businesses in the US in 2017, with a typical loss of $188,400, yet only 31% buy Cyber Risk Insurance.
What is equally surprising is that 42% of respondents that do not purchase Cyber Risk Insurance believe that their business risk profile does not warrant the coverage. However, cyber crime (loss of money) and business interruption losses from ransomware attacks can apply to any type of business. The most common type of loss, according to the paper, is not data breach. Of the organizations that suffered a cyber attack, 44% reported losses from business interruption.
Cyber Risk Insurance is an essential coverage for SMBs (small and medium-sized businesses) for protection from both criminal attacks and employee errors. Coverages vary widely, and so a thorough review is essential to ensure that comprehensive coverage is in place.
Tennant Risk Services, a division of Worldwide Facilities, is a specialty wholesale broker and underwriting manager, and delivers expertise, markets and exemplary services to our retail insurance agent clients in the placement of professional liability and specialty insurance (E&O, D&O, EPL, Cyber Risk, Specialty). We are experts in Cyber Risk Insurance and excel at hard to place accounts.